Generate Capital Invests £38 Million in GrowUp to Scale

Key Takeaways:

1. Generate Capital invests £38 million in GrowUp to meet the rising demand for ready-to-eat salads.
2. The investment will expand GrowUp’s capacity, support their brands, drive R&D, and strengthen their position in the UK salad market.
3. GrowUp’s Kent vertical farm will increase production to the equivalent of 1,000 acres of grade 1 farmland.
4. GrowUp is the first vertical farm to supply branded salads to major UK retailers like Tesco and Iceland.
5. The collaboration aims to provide sustainable, pesticide-free, and longer-lasting leafy greens to UK consumers.

Generate Capital, a leader in sustainable infrastructure investment, and GrowUp, the UK’s top-selling vertical farm, have announced a significant £38 million investment to address the growing demand for GrowUp’s ready-to-eat salads. This funding builds on an initial investment made in 2021, which allowed GrowUp to demonstrate the viability of their energy-efficient growing systems and to begin transforming a five-acre brownfield site in Kent into the equivalent of 1,000 acres of grade 1 farmland.

Expanding Sustainable Agriculture

Generate Capital’s latest investment will be pivotal in expanding the capacity at GrowUp’s Kent vertical farm, thereby accelerating GrowUp’s leadership in the UK salad category. This financial boost will also support the company’s brands, Unbeleafable and Fresh Leaf Co., drive research and development at GrowUp’s Leaf Lab site in Cambridge, and enhance GrowUp’s impact as a certified B Corporation.

Marcus Whately, CEO of GrowUp, expressed enthusiasm about the investment, highlighting its significance for the company’s growth and sustainability goals. “This investment is a fantastic boost to GrowUp and recognises the team’s passion and talent. We partnered with Generate Capital because, as a $10 billion sustainable infrastructure investor with a mission to ‘rebuild the world together’, Generate Capital aligns with our ethos. With Generate Capital’s support, we have proved that vertically farmed salads are sustainable, cost-competitive, and commercially viable, as well as tasty, healthy, and long-lasting. Together we can unlock a new salad category and meet growing consumer demand.”

Strengthening Market Position

GrowUp has already made a notable impact in the UK market by becoming the first vertical farm to supply branded, bagged salads to leading supermarket chains such as Tesco, Iceland, and SPAR, as well as other major food service customers. This achievement underscores the effectiveness of their approach and the high demand for their products.

Scott Jacobs, CEO and Co-founder of Generate Capital, praised GrowUp’s rapid growth and market acceptance. “GrowUp is one of the UK’s most exciting and innovative vertical farming operations, experiencing nearly 800% sales increase year over year. Their ability to quickly earn the trust of the UK’s largest retailers shows the appeal of their product lines, the strength of their team, and their ability to meet rising consumer demand for healthy, locally grown food. We look forward to working with them to keep accelerating the decarbonisation of the food system by providing nutritious, affordable, and sustainable greens to UK consumers and food manufacturers.”

Future Outlook

With over 11 years of experience in vertical farming, GrowUp has come a long way since its founders, Kate Hofman and Tom Webster, established the first vertical farm in 2013. Their journey from supplying salad leaves to London markets and restaurants to becoming a major player in the UK salad market has been significantly supported by Generate Capital’s investments.

Eduardo Clemente, a Managing Director at Generate Capital, highlighted the success of the collaboration. “Since our first investment in 2021, GrowUp’s unique approach has demonstrated that producing superior, sustainable leafy greens at scale and at competitive pricing is possible, unlocking the potential to capture significant market share in the UK salad market. In less than a year from starting operations at industrial scale, GrowUp’s success in securing significant interest and volumes from some of the UK’s largest retailers is a testament to their value proposition.”